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If you’re just getting started with earning points and miles, you’ll quickly find that transferable points are incredibly valuable for earning and redeeming with a wide variety of travel partners. American Express, Chase, Citi, Marriott and Capital One all offer transferable point programs. But today, we’ll focus on Chase Ultimate Rewards since Ultimate Rewards points routinely rank highly in TPG’s monthly valuations. In fact, Ultimate Rewards points are currently tied with Amex Membership Rewards points for the most valuable transferable currency, as both are valued at 2 cents apiece.

Why These Two Cards?

(Photo by Eric Helgas/The Points Guy)

I’ll break down the full benefits of each product below, but here’s a quick explanation of why you’ll want to start with these two cards in particular. The number one reason is that Chase limits the number of credit cards you can successfully apply for with its “5/24 rule” — basically, if you’ve opened five or more personal cards across all banks in the past 24 months, it’s very unlikely you’ll be approved for most cards in Chase’s portfolio, including the Freedom Unlimited and Sapphire Preferred.

As for the Chase Freedom Unlimited card, it makes a good second application because of the high return you’ll get on everyday, non-bonus-category spending. The card offers 3% cash back on the first $20,000 you spend in your first year; after that, you’ll earn an uncapped 1.5% cash back on all purchases. But, as I’ll discuss later in this guide, that can equate to 3x and 1.5x Ultimate Rewards points per dollar — a great earning rate for a card with no annual fee.

Benefits: 3% cash back on all purchases your first year up to $20,000 spent. After that, unlimited 1.5% cash back on every purchase. 0% intro APR on purchases and balance transfers for 15 months (after that 17.24 – 25.99% variable APR applies).

Current bonus: Earn 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening. These points are worth $750 in travel when you redeem directly through the Chase Ultimate Rewards portal.

Speaking of the Chase Freedom, you may be wondering how it fits into the picture — especially since it’s another no-fee cash-back option. The Freedom is particularly valuable due to its rotating quarterly bonus categories, since you can earn 5% cash back (or 5x points) on up to $1,500 in combined purchases every three months. It’s definitely worth applying for the card and maximizing these bonus categories if you can, but considering Chase’s restrictions on applications and the Freedom Unlimited’s higher earning rate for everyday spending, it’s not necessarily as high of a priority.

2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.

No foreign transaction fees

1:1 point transfer to leading airline and hotel loyalty programs

Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel

No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards

Intro APR on Purchases

N/A

Regular APR

18.24% - 25.24% Variable

Annual Fee

$95

Balance Transfer Fee

Either $5 or 5% of the amount of each transfer, whichever is greater.

Recommended Credit

Excellent/Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

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The credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Please view our advertising policy page for more information.

Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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The credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Please view our advertising policy page for more information.

Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.